If Elasticity of Demand Is 1 and Elasticity of Supply

question 70

Multiple Choice

If elasticity of demand is 1 and elasticity of supply is 0, what percentage of a 10 percent tax will be borne by consumers?

• A) 100 percent.
• B) 50 percent.
• C) 10 percent.
• D) 0 percent.

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Definitions:

Lungs

Pair of respiratory organs in the chest of vertebrates where blood is oxygenated.

Air

The unseen mixture of gases that envelops the Earth, primarily composed of oxygen and nitrogen.

P Wave

A component of an electrocardiogram (ECG) representing the depolarization of the atria preceding a heartbeat.

Sinoatrial Node

The heart's natural pacemaker, located in the right atrium, responsible for initiating the heartbeat.